The Irish teen is considered the least flashy member of the One Direction crew, and this is the most extravagant splurge he's made.
But it's well deserved. Niall apparently underwent an intensive 25-hour driver's course to take his test last Tuesday.
And it looks like the lessons paid off. He sailed through the test and passed with flying colours on his first attempt. Niall scored a near-perfect drive, making just two mistakes.
The star ripped off his L-plates after the test and picked up his new set of wheels last Friday.
Niall's Grade A test results are even more impressive given that the young singer frequently stopped his lessons to meet and greet fans.
A source said: "He stopped to speak with fans and signed lots of autographs. He never turned anyone down who wanted to get their picture taken with him.
"Even with all of that, his instructor was still overheard saying he had never had a pupil so focused on passing his test."
Niall's brother, Greg, had predicted that his younger sibling would opt for a Range Rover once he passed the test, while his dad believed he would go for an Audi R8.
Louis Tomlinson wrote on Twitter to congratulate his friend: "Just wanted to say congrats to Niall for passing his driving test! Smashed it!"
It was a good week for Niall who also topped nine million followers on Twitter.
"Holy poop!" Niall wrote. " I just noticed I have 9 million followers! Thank you sooo much guys! Best fans on the planet."
Niall and the rest of One Direction recently signed a new financial contract with Sony to ensure they stay together for the next three years.